Indian Industries

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Industries in India

Though the Indian industrial growth has been robust and steady after globalization, it was affected by global recession in the middle of 2008. Economic growth declined to 6.7 per cent in 2008 – 09, when it was 8.8 per cent in the previous five years 2003 – 04 to 2007 – 08.

After reaching the ebb of 0.6 per cent growth during the second half of 2008 – 09, growth in Index of Industrial Production ( ITP ) reached a level of 7.7 per cent during April – November 2009. It was made possible by a policy of liberal regime adopted by the government. Interest rates were lowered. Incentives were offered in the form of concessional excise duties. However, the economy started witnessing double digit food inflation of 17.9 per cent in April 2010.

Foreign Direct Investment ( FDI ) which was robust in 2008 – 09 continued to fall. However it has picked up during 2009 – 10. After the global recession, the major industrial sectors like automobiles, rubber and plastic products, wool and silk textiles, wood products, chemicals etc staged a strong recovery during + April – November 2009, while machinery and textiles reinforced their growth.

Indian Textile Industries

  • Indian Textiles sector is the second largest provider of employment next to agriculture. It provides employment to 35 million people. 14 per cent of the industrial production is contributed by textiles. It is roughly 4 per cent of GDR 17 per cent of export earnings come from these sectors.
  • General Studies Question Bank CD

  • This industry which was growing at 3 – 4 per cent during the last 60 years, has now accelerated to annual growth rate of 8 – 9 per cent. It is expected that investments will touch ₹1,50,600 crore by 2012. It will be able to generate 17.37 million jobs. However, on the export front, after the expiry of the quota regime in 2004, Indian textile export lag substantially behind China in terms of rate of growth.
  • As of 31.09.2010 there are 1896 cotton / man – made fibre textile mills in the country with an installed capacity of 38.53 million spindles, 5,18,000 rotors and 57,000 looms.
  • The Government will implement the Development and Growth of the Technical Textiles Scheme during the XI Five Year Plan period. The scheme aims to set up four Centres of Excellence ( CoE ), one each for the Agrotech, Buidtech, Meditech and Geotech group of technical textiles at the outlay of ₹44 crore.
  • The Synthetic and Art Silk Mills Research Association ( SASMIRA ), Mumbai in association with the Manmade Textiles Research Association ( MANTRA ), Surat and Navsari Agriculture University, Navasari, Gujarat has been designated as a CoE for Agrotech. The Northern Indian Textiles Research Association ( NITRA ), Ghaziabad in association with the Indian Institute of Technology ( HT ), Delhi, has been designated as a CoE for Protech. The Ahmedabad Textiles Industry Association ( BTRA ), Mumbai has been designated as CoE for Geotech. For Meditech, the South India Textiles Research Association, Coimbatore and AC College, Chennai have been designated as CoE.
  • The Centre of Excellence for Geotech Textiles has been already inaugurated at BTRA, Mumbai and another one for Meditech is excepted to be operational at S1TRA, Coimbatore shortly. The Government proposes to launch the Technology Mission on Technical Textiles which will be implemented during the XI Five Year Plan period ( 2007 – 12 ). The Mission will develop capacity, devise standards, develop products and set up common testing facilities, expand the domestic and export markets and develop skills.

Food Processing Sector in India

  • Though India is the second largest producer of food, the food processing industry is relatively small. Indian food market is set to grow two­fold by 2025 and food consumption also is set to grow by 4.5 per cent. It is possible by steady growth of Indian industry and improving life style.
  • At present the food processing sector employs about 13 million people indirectly. Food processing sector contributed over 14% of manufacturing GDR The centre has set an investment target of ₹ one lakh crore by 2015. The sector’s expected to grow by 20% and value addition to increase by 35% by 2015.
  • The most promising areas of growth are fruit & vegetable processing, meat, poultry, dairy & seafood, packaged convenience food, soft drinks and grain processing. An important factor which has provided substantial stimulation to the food processing equipment industry is the emphasis on the rapid growth of processed food exports from India. The food processing machinery can be classified under the general category of industrial machinery which is de – licensed under the current industrial policy and this sector qualifies for 100% FDI under automatic approved.

Indian Cement Industry

  • As cement is the main driving force in infrastructural development, its capacity has risen from 116.35 million tons in 2002 – 03 to 162 million tons in 2006 – 07. Now Indian cement production has exceeded 300 million tons – the second largest produces of cement in the world next to China. As on April 1, 2010, there were 159 large cement plants. The total FDI in the cement sector between April 2000 and August 2010 stood at US$1.9 billion. It is poised to grow at the rate of 10% per annum. It provides direct employment to 1,20,000 people.
  • The price and distribution control of cement has been removed since 1989 and it has been exempted from licensing in 1991 under the Industrial ( Development & Regulation ) Act, 1951. Since then, cement industry has made rapid strides both in capacity / production and process technology.

Paper and Newsprint IndustryGeneral Studies Question Bank CD

  • The paper industry has a vital role to play in socio – economic development of the country. There are around 700 paper mills producing nearly 9.18 million tons of paper and paperboard ( 2009 – 10 ) and around 1.04 million tonnes of newsprint ( 2007 – 08 ) and around 1.04 million tonnes of newsprint ( 2007 – 08 ) against an estimated operational capacity of nearly 7.5 million tonnes of newsprint respectively. The paper industry growth is fore casted at 8.4% annually, touching 11.5 mt in 2011-12 and 15 mt by 2015.
  • The per capita consumption of paper, which is the bench mark of modernisation of any country, stands at 10.6 kg for India, which is far below in comparison to the global average of 50 kg. The paper industry is delicensed and decontrolled since 1997. Foreign Direct Investment up to 100% is permitted on automatic route.

Leather Products in India

  • The leather Industry occupies a prominent place in the Indian economy in view of its substantial export earnings, employment potential and growth. More than 30 per cent of the work force employed in this sector are women. It has been estimated that about 10 per cent of the world’s supply of leather is processed in India. The indian leather industry has set $7 billion export target by 2011.

Chemicals and Petrochemicals Industry

  • The sector includes basic chemicals and its products, petrochemicals, fertilisers, paints, gases and pharmaceuticals. Major chemicals registered a compounded annual growth of 3.1 per cent during 2002 – 03 to 2007 – 08. In the wake of the recent economic slowdown, production declined by 5.2 per cent in 2008 – 09. The growth in major chemicals stood at ( – ) 0.91 per cent during April – December 2009.

Pharmaceutical Sectors in India

  • The Indian pharmaceutical industry has grown from a humble ₹ 1,500 crore turnover in 1980 to approximately ₹ 12 billion in 2011. The country now ranks third in terms of volume of production ( 10 per cent of globed share ) and 14th by value.

Indian Fertilizer Industry

  • The rapid increase in the population of the country is the main driving force for the growing demand for agricultural products. As this demand is increasing over the decades, so is the demand for nutrients to support the plant growth.
  • The total food grain production of the country has increased from 199.44 million tonnes in the year 1996 – 07 to 241 million tonnes in 2011 – 12. India today is the third largest producer of nitrogenous fertilisers in the world only behind China & USA. At present, there are 56 large size fertiliser units in the country manufacturing a wide range of nitrogenous, phosphatic and complex fertilisers.

General Studies Question Bank CD

Steel Sector in India

  • India is the 5th largest producer of Crude Steel in the World and is expected to become the 2nd largest producer by 2015 – 16. The Crude Steel Production in 2009 – 10 is 65 million with growth rate of 11%.

Consumption :

  • India is the fifth – largest consumer of steel in the world. It consumes’, about 1.7 million tonnes of stainless steel a year with around 70 per cent accounting for kitchenware. However, its use in railway coaches, wagons, airports, hotels and retail stores is growing immensely.

Indian Automobile Industry

  • Automobile Industry was delicensed in July 1991 with the announcement of the New Industrial Policy. The passenger car sector was however delicensed in 1993. No industrial licence is required for setting up of any unit for manufacture of automobiles except in some special cases. At present 100% Foreign Direct Investment ( FDI ) is permissible under automatic route in this sector. The automobile industry currently estimated to have a turnover of US$73 billion, accounting for 6 percent of GDP.

Micro, Small and Medium Enterprises ( MSMEs )

  • The Ministry of Micro, Small and Medium Enterprises ( MSME ) performs its tasks of formulation of policies and implementation of programs mainly through Office of the Development Commissioner ( ODC ), National Small Industries Corporation Ltd. ( NSIC ), Khadi and Village Industries Commission ( KVIC ) and Coir Board.

Definitions of MSMEsGeneral Studies Question Bank CD

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Public Sector Enterprises ( PSEs )

  • PSEs have made a notable contribution to the economic growth of the country, particularly by creating a diversified industrial base. During the first two years of the Tenth Five Year Ran, the process intensified and a sum of ₹18,895 crore was realised from disinvestments. In 2004 – 05, there was a policy shift and the United Progressive Alliance ( UPA ) government, while expressing a commitment toward a strong and effective public sector, decided that ‘generally profit making companies will not be privatised’.
  • There were altogether 249 Central Public – sector Enterprises ( CPSEs ) under the administrative control of various ministries / departments as on March 31, 2009 / The cumulative investment ( paid – up capital plus long – term loans ) in all the CPSEs together stood at ₹5,79,920 crore as in March end 2010.

Infrastructure Development

  • For setting up of industrial Estates and to develop infrastructure facilities, the Integrated Infrastructure Development ( IID ) scheme was launched in 1994. The scheme covered rural as well as urban areas with a provision of 50% reservation for rural areas and 50% of industrial plots for tiny sector.

Rajiv Gandhi Udyami Mitra Yojana ( RGUMY )

  • The main objective of the scheme is to promote and support establishment of new micro and small enterprises through handling of potential first generation entrepreneurs, who have already successfully completed Entepreneurship Development Program ( EDP ) / Skill Development Program ( SDP ) / Entepreneurship – cum – Skill Development Program ( ESDP ) of at least two weeks duration or have undergone vocational training from it.

Oil and Gas Industry in  India

  • The oil and gas industry has been instrumental in fuelling the rapid growth of the Indian economy. The petroleum and natural gas sector which includes transportation, refining and marketing of petroleum products and gas constitutes over 15 per cent of the country’s gross – domestic product ( GDP ). As per the Ministry of Petroleum, demand for oil and gas is likely to increase from 176.40 million tonnes of oil equivalent ( mmtonnes ) in 2007 – 08 to 233.58 mmtonne in 2011 – 12.
  • Oil Refining : At present, there are 21 refineries operating in the country ( 17 in the Public Sector and three in the Private Sector ) and one joint venture of BPLL & Oman Oil Company. The total refining capacity in the country ( 01.06.2011 ) is 193.386 MMTPA.

Gems and Jewellery Industry

  • The Indian gems and jewellery industry is one of the fastest growing segments in the Indian economy with an annual growth rate of approximately 15 per cent. With exports of over US$ 37 billion in 2010, the gems and jewellery sector accounts for nearly 13 per cent of India’s toted exports. India is already the largest diamond cutting and polishing centre in the world. The Indian diamond cutting and polishing industry enjoys 60 per cent value share, 82 per cent carat share and 95 per cent share of the world market in terms of number of pieces.

Indian Sugar Industry

  • India is the largest producer – consumer of sugar in the world. The sugar industry is the second largest agro – based industry, next to textiles in the country. About five lakh workers are directly employed in the sugar industry besides many more in industries, which utilize by – products of sugar industry as raw material. The country has 582 sugar factories. Indian Sugar Mills Association has pegged the production at 24.2 mt in 2010 – 11.

Tourism Sectors in India

  • Tourism is the largest service industry in the country – Its importance lies in being an instrument for economic development and employment generation, particularly in remote and backward areas. It is contributing towards overall socio – economic improvement and accelerated growth in the economy. The global financial crisis affected growth of tourism in 2008 – 09. Foreign tourist arrivals and foreign exchange earnings have so far registered a positive growth in the year 2010 – 11. The total number of foreign tourist in 2010 was 5.58 million registering a rise of 8.1 percents.

Electronics and Information Technology

  • The economic recession in leading export destination adversely impacted the performance of Indian IT companies. The increase of 14.6 per cent in software and services exports in 2008 – 09 was the net effect of a growth of 35.3 per cent in the first six months and a’ decline of 1.9 per cent in the next six months. The decline continued in the first half of 2009 – 10 as well. 9.45 During 2008, electronics hardware production in India constituted around 1.5 per cent of global electronics production. The production of electronics hardware in the country stood at Rs. 94,690 crore in 2008 – 09, registering a growth of 12.1 per cent, compared to a growth of 27.8 per cent in 2007 – 08; the decline is attributable to the global economic slowdown.

Civil Aviation Sectors in India

  • With a growth rate of 18 per cent per annum, the Indian aviation industry is one of the fastest growing aviation industries in the world. The government’s open sky policy has made many overseas players enter the market and the industry has been growing both in terms pf players and number of aircrafts. Passenger traffic is projected to grow at an average of over 15 per cent in the next 5 years. Cumulatively the air cargo business in the country is estimated to have touched 3,800 crores in 2010.

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